Ibex 35 moves away from lower levels despite Sabadell collapse

The Ibex 35 closed with a rise of 0.43% to 8,661.5 points on Tuesday. Through its performance, the Spanish index moves away from its lows, despite the collapse of Banco Sabadell. The bank was the worst performer in the market after Deutsche Bank bought a 3% stake in the company.

However, on the gains side, Banco Popular has risen 6% to 0.9 euros as it closes in on the financing of a real estate project with seven other groups. In fact, Popular could have already closed a pre-agreement with investors of the project, which include Citigroup, Deutsche Bank, Credit Suisse, Morgan Stanley and JPMorgan Chase.

Another stock which performed well was Arcelor Mittal, which increased 5.88% to finish on 7 euros, its highest level since June 2015. The third highest performer was ACS, which rose 2.24% to 27.15 euros.

Without doubt however Banco Sabadell was the biggest faller of the session, losing 4.37% to 1.20 euros. Deutsche Bank announced on Tuesday that it had financed the accelerated sale of the Spanish bank, which until now was owned by Colombian businessman Jaime Gilinski.

Grifols accompanied it at the bottom of the board with a fall of 2.07% to 17.95 euros. Gamesa was the third worst performer on the day after registering a fall of 1.53% to 18.60 euros. Inditex was the only heavyweight which closed in negative, as the textile company moved 0.14% lower to 360.20 euros.

In the rest of Europe markets were largely on the green side. The FTSE 100 in London rose 0.57%, the CAC 40 in France by 0.38%, and for now it looks like the markets aren't too affected by a triumph for Marine le Pen.

On the other side of the Atlantic, Wall Street closed with historic highs for the S&P, the Dow Jones, the Nasdaq Composite and the Russell 2000 all recording all-time highs. On Tuesday the Dow Jones Industrial Average reached over 19,000 fior the first time in its history.

Donald Trump has gone into more depth about aspects of his policies that he plans to implement when he takes office in January, this time through a Twitter video of more than two minutes. The president-elect of the US has promised to withdraw his country from the Trans-Pacific Partnership trade agreement, after expressing opposition to the deal during his election campaign. The TPP was signed by 12 different nations in February after six years of negotiations, including Australia, Canada, Mexico and Malaysia.

However, aside from the comments from Trump, markets (above all European), appear to need another catalyst in order to provide a reaction. The next relevant date will take place next Wednesday with the meeting of the Organisation of Petroleum Exporting Countries. Oil prices rose again on Tuesday while representatives from the OPEC nations work on the details of the agreement to reduce production levels.

At the time of markets closing in Europe, Brent Crude was quoted as slightly higher at $48.8 per barrel, and West Texas also fell, by 0.93% to $47.76.

Bolsamania technical analyst José María Rodríguez said that the rebounds experienced by the Ibex were a natural occurrence after last week's falls.

"The rises of Tuesday don't mean an awful lot, there aren't a lot of technical implications here," Rodríguez explained. "It is a simple rebound within the lateral movement of the past few days."